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You have opened your own word processing service. You have already bought a special computer needed for word processing and paid $5,000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500. You could sell any used machine for 200 dollars – and no machine can be used for more than one year. If you were not word processing, you could earn $20,000 per year at an alternative job. Assume that the interest rate is 10%. You can also hire an assistant who can do everything that you would do for $20,000 per year, and you would still continue to do word processing. One person using one computer can produce 11,000 typed pages per year, and the price per page for your service is $2. Calculate the following three options: You are considering three options: (1) leave your business the way it is, (2) expand your business by hiring an assistant, or (3) shut down all operations. Based on the costs and revenues above, which should you do? Explain and show any relevant calculations.
you must identify a franchise that is relatively new (less than 10 years old and fewer than 25 locations in Canada). You must then evaluate the attractiveness of the franchise for an identified location. The evaluation should include: Presentation ..
If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?
People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of imports causes net exports to rise. Using the circular flow diagram as a guide, explain why total expenditures and national o..
Industry structure is often examine through computing the 4-company Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent.
Write down the household's budget constraints for period 1 and 2 and identify the current account.
In the model of a dominant firm, assume that the fringe supply curve is given by Q= -1 + 0.2P, where P is market price and Q is output. Demand is given by Q = 11-P.
A company is manufacturing output in a competitive market, where demand is P = 24 - 2Q. Describe the nature of the market failure and derive Pareto optimal level of output.
Supposing the marginal cost curve is for a competitive industry as a whole, find out the profit-maximizing level of output and price.
Specifically, you should help Nick obtain key market insights through marketing research. In addition, you should help him to determine which countries besides the U.S. (the primary target market) should be targeted to make the most out of his new..
What will the economic impacts of maintaining lower CO 2 emissions in the aggregate for the Turkish economy?
What is a convertible bond and why do investors find such bonds attractive? What advantages do convertible bonds have for the issuing firms? What stakeholder group might be harmed when a firm issues convertible bonds?
W(sub)a= 1/a1(Y1)+1/a2(Y2)+1/a3(Y3)+1/a4(Y4) where a(i) are the constants. a) What restriction on the ai is needed for Wa to be an unbiased estimator of mu? b) Find the variance of Wa.
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